Russia’s Mobile TeleSystems (MTS) has secured a credit facility for up to US$300m with Citibank Europe and Swedish Export Credit Corporation (SEK).
Supported by Sweden’s Exportkreditnamnden (EKN), the facility will be used to buy equipment from…
Russia’s Mobile TeleSystems (MTS) has secured a credit facility for up to US$300m with Citibank Europe and Swedish Export Credit Corporation (SEK).
Supported by Sweden’s Exportkreditnamnden (EKN), the facility will be used to buy equipment from Swedish vendor Ericsson, contributing to the development of MTS’ LTE mobile networks.
The one-tranche facility will mature in July 2024 and have a Libor-based annual interest rate, Russia’s largest mobile operator said in a statement. MTS may draw upon the facility over the next 12 months.
Citibank Europe facilitated the transaction in its role as MLA, while Citibank International acted as security agent. SEK also helped to arrange the transaction. Both Citibank and SEK acted as original lenders.
Last month, MTS approved the issue of exchange bonds worth a total Rbs50bn (US$1.42bn), the timing of which will depend upon market conditions. Proceeds will be used to refinance existing debt and pay dividends.
In December last year, the operator agreed new terms with Sberbank for credit agreements totalling Rbs80bn, extending their tenures and lowering interest rates. At the time, Kornya said the company was continuing to optimise its debt portfolio.
